KABUL (Commodity Online) : As Afghanistan preparing to auction rights to explore its vast mineral; resources, Indian companies formed a consortium to bid for the same that includes giants such as SAIL and JSW Steel.
Other members of the consortium are NMDC Ltd., Jindal Steel & Power Ltd., Monnet Ispat Ltd., Rashtriya Ispat Nigam Ltd. and JSW-Ispat Steel Ltd.
According to reports, Afghan reserves may hold 2 billion metric tons of iron ore and require about $3 billion of investments over 30 years.
As per US survey teams findings, Afghanistan’s mineral resources include in iron ore, copper, niobium (a metal used in producing superconducting steel), cobalt, gold, molybdenum, and other rare earth elements.
All these precious minerals were estimated to be worth $1 trillion to $3 trillion. The country also holds extensive supplies of gemstones and natural gas.
Analysts said the successful exploration of these minerals could transform Afghanistan into one of the most important mining centers in the world.
The Afghanistan government hopes to earn $3.5 billion in revenue a year from the resource sector within 15 years
Iron ore prices have skyrocketed as BHP Billiton, Rio Tinto, and Vale have succeeded in bidding up prices in recent years, since the main importer of iron ore, Chin is completely dependent on their supplies.
They demanded 90-100 percent price increases for iron ore this spring, after several years of comparable price increases. Xinhua reported that Chinese steel firms would pay $110-$120 per ton of imported iron ore, compared to $62 per ton last year.
